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| Ed Miliband distances Labour from ex-Co-op Bank chairman Paul Flowers | Ed Miliband distances Labour from ex-Co-op Bank chairman Paul Flowers |
| (about 3 hours later) | |
| Ed Miliband has distanced himself from Paul Flowers, the Co-op Bank chairman accused of financial incompetence and buying hard drugs. | Ed Miliband has distanced himself from Paul Flowers, the Co-op Bank chairman accused of financial incompetence and buying hard drugs. |
| The Labour leader spoke about the disgraced bank boss after David Cameron tried to drag the opposition into the scandal over its close links to the Co-op movement. | |
| His comments came as it emerged that Flowers left a drug charity after an investigation of his expenses claims. | |
| He was suspended from the Lifeline Project in 2004, where he was a trustee on the board of the organisation, the charity said. | He was suspended from the Lifeline Project in 2004, where he was a trustee on the board of the organisation, the charity said. |
| Asked about his relationship to Flowers, Miliband told ITV News: "Paul Flowers was somebody who I met with on one occasion and had meetings with a wider group on a couple of other occasions. He was never my close adviser. | Asked about his relationship to Flowers, Miliband told ITV News: "Paul Flowers was somebody who I met with on one occasion and had meetings with a wider group on a couple of other occasions. He was never my close adviser. |
| "The important thing now is to make sure that the Co-op can go from strength to strength in the future and the police need to look at any matters that arise for them." | "The important thing now is to make sure that the Co-op can go from strength to strength in the future and the police need to look at any matters that arise for them." |
| Asked if he welcomed the inquiry, Miliband said: "Let's see what the government proposes. What I am utterly confident about is the Labour party always acts with the utmost integrity and we did on this occasion too." | Asked if he welcomed the inquiry, Miliband said: "Let's see what the government proposes. What I am utterly confident about is the Labour party always acts with the utmost integrity and we did on this occasion too." |
| Labour claimed George Osborne, had questions to answer following a Financial Times report suggesting the chancellor pressed for the Co-operative Bank to be spared from tougher capital rules imposed by Brussels. | Labour claimed George Osborne, had questions to answer following a Financial Times report suggesting the chancellor pressed for the Co-operative Bank to be spared from tougher capital rules imposed by Brussels. |
| The shadow chief secretary to the Treasury, Chris Leslie, said: "There are now serious questions for George Osborne to answer about how the Co-operative Bank got into trouble on his watch and his role over the last three years. | The shadow chief secretary to the Treasury, Chris Leslie, said: "There are now serious questions for George Osborne to answer about how the Co-operative Bank got into trouble on his watch and his role over the last three years. |
| "The chancellor and his ministers actively encouraged the bank's failed bid for 632 Lloyds branches, with reports of 30 ministerial meetings to smooth the way for this deal. | "The chancellor and his ministers actively encouraged the bank's failed bid for 632 Lloyds branches, with reports of 30 ministerial meetings to smooth the way for this deal. |
| "What due diligence was done by the chancellor and the Treasury into the state of the Co-op Bank and its leadership? And why did the chancellor argue in Brussels for the Co-op Bank to be spared from tougher rules? | "What due diligence was done by the chancellor and the Treasury into the state of the Co-op Bank and its leadership? And why did the chancellor argue in Brussels for the Co-op Bank to be spared from tougher rules? |
| "If David Cameron wants a proper inquiry into what went wrong at the Co-op Bank, then George Osborne will have to answer all these questions." | "If David Cameron wants a proper inquiry into what went wrong at the Co-op Bank, then George Osborne will have to answer all these questions." |
| Nick Clegg, the deputy prime minister, on his LBC 97.3 phone-in radio show, said: "It all sounds extremely murky to me. Obviously we've got these inquiries, three different inquiries – a police one, one from the regulators, another one set up by the chancellor – to understand how on earth this guy was appointed to the head of this bank in the first place. | |
| "There are some very searching questions to be asked and I'm sure the Labour party will want to both account for itself but also make sure that, in addition to all the question marks that still exist about the way in which they act almost as puppets on the end of a string for the trade union bosses, that they are not also in hock to some slightly off characters at this bank." | "There are some very searching questions to be asked and I'm sure the Labour party will want to both account for itself but also make sure that, in addition to all the question marks that still exist about the way in which they act almost as puppets on the end of a string for the trade union bosses, that they are not also in hock to some slightly off characters at this bank." |
| On Wednesday, Cameron ordered two inquiries into the bank in a move that sparked claims he was playing politics with the situation, as the wider Co-op Group has given donations and money to Labour. | On Wednesday, Cameron ordered two inquiries into the bank in a move that sparked claims he was playing politics with the situation, as the wider Co-op Group has given donations and money to Labour. |
| One inquiry, led by the financial regulator, will pre-date 2012 and cover the period back to 2009, when the Co-op merged with the Britannia building society at the height of the banking crisis. | |
| The takeover contributed to the £1.5bn capital shortfall revealed at the bank earlier this year and forced it into the hands of US hedge funds that owned its debt. | The takeover contributed to the £1.5bn capital shortfall revealed at the bank earlier this year and forced it into the hands of US hedge funds that owned its debt. |
| During prime minister's questions, Cameron described Flowers as the "man who has broken a bank" after questions about his suitability to run a bank, drug-taking and resignation as a Bradford councillor over adult material on his computer. | |
| He said that Flowers had "trooped in and out of Downing Street under Labour" and was "still advising the leader of the Labour party". | He said that Flowers had "trooped in and out of Downing Street under Labour" and was "still advising the leader of the Labour party". |
| Cameron added: "And yet now we know all along they knew about his past. Why did they do nothing to bring to the attention of the authorities this man who has broken a bank?" | Cameron added: "And yet now we know all along they knew about his past. Why did they do nothing to bring to the attention of the authorities this man who has broken a bank?" |
| Questions have also been raised about the role of Conservative ministers in Co-op's financial woes. Mark Hoban, a former City minister, was deeply involved in discussions with the bank over its now aborted attempt to buy more than 600 branches from Lloyds. | |
| Asked about his involvement, Hoban said he had nothing to say. Osborne also intervened in a push to stop Co-Op being subject to tighter Brussels regulation on the level of capital it needs to hold. | Asked about his involvement, Hoban said he had nothing to say. Osborne also intervened in a push to stop Co-Op being subject to tighter Brussels regulation on the level of capital it needs to hold. |
| Flowers's Labour party membership has been suspended since the publication on Sunday of a video allegedly showing him handing over cash for illegal drugs. | Flowers's Labour party membership has been suspended since the publication on Sunday of a video allegedly showing him handing over cash for illegal drugs. |
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